Showing more green-shoots of recovery of the pandemic pummelled economy, advance tax payment by corporates has jumped 49 per cent to Rs 1,09,506 crore in the third quarter this fiscal, a CBDT source has said. The higher growth is primarily due to the low base last fiscal year when the government had slashed corporation tax rates to a record low of 25 per cent, leading to lower payouts in Q3 of FY20.
During the same quarter last fiscal, corporate advance tax stood at a low Rs 73,126 crore. Corporate and personal income tax are the biggest components of the advance tax base, which is paid in four instalments of 15, 25, 25 and 35 per cent of the computed tax liability respectively in the four quarters. The big boost in corporate tax collection has helped the gross tax collection improve to Rs 7,33,715 crore, down only 12.1 per cent from Rs 8,34,398 crore last year.
During the first three quarters, advance corporate tax collection stood at Rs 2,39,125 crore, down 4.9 per cent from Rs 2,51,382 crore, as the first two quarters bore the brunt of the pandemic-induced lockdown. Advance personal income tax on year-on-year basis declined 5.6 per cent to Rs 31,054 crore this quarter.
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